Financial Impact of Consumer Behaviour in Sustainable Clothing Retail Outlets: An Empirical Analysis

Abstract

The research paper titled "Financial Impact of Consumer Behavior in Sustainable Clothing Retail Outlets: An Empirical Analysis" investigates how consumer preferences for sustainability affect the financial performance of fashion retail outlets. With growing environmental awareness, many consumers now consider ethical production, environmental impact, and transparency when making purchase decisions. The study uses primary data collected from 92 consumers in Pune who shop at leading sustainable clothing brands such as Zara, Levi’s, and H&M. The survey focused on shopping behavior, willingness to pay a premium, satisfaction levels, and factors influencing repeat purchases. Secondary data from sustainability reports and financial records of the selected brands supplemented the findings. Results indicate that ethical production (39.1%) and environmental concern (26.1%) are key purchase drivers. However, affordability remains a concern, with 54.3% of respondents willing to pay only 0–5% more for sustainable products. Despite this price sensitivity, 91.3% of participants showed a high likelihood of recommending sustainable outlets, suggesting strong brand loyalty. Sustainability initiatives like eco-friendly packaging and ethical sourcing were also linked to improved customer satisfaction and retention. The study concludes that while sustainable practices positively influence customer loyalty and sales, their success depends on maintaining price competitiveness. The findings offer valuable insights for fashion retailers aiming to align profitability with ethical and environmental goals in an increasingly eco-conscious market.